Investing process has never been easy when it comes to risking funds and shares. Breaking your way through different stock exchanges might become a truly tough challenge, especially when it comes to the largest and most renowned ones, like Forex. Unfortunately, fraudulent schemes may become a real danger for law-abiding traders. That is why CFTC (Commodity Futures Trading Commission) is always on guard. The very existence of the CFTC, the American derivative regulator, proves that it is worth working only with the trustworthy best US Forex brokers. Most recently, the commission accused three investment firms of operating under the Ponzi scheme. From the summer of two thousand fifteen until the recent discovery by CFTC, John D. Black was involved in fraudulent business. You may know about his bonds with Financial Tree and other «supportive» financial businesses. Christopher Mancuso and Joseph Tufo assisted him in carrying out the knavish activities. Scammy trading in the foreign exchange market and the offering of binary options brought Black and his accomplices $ 15.5 million US. Using these funds, they renovated their houses, rested in luxury, and gambled. Also, they spent eleven million dollars were to return funds to their early investors (to support the fraud).
Well-known schemes still work perfectly
To hide his illegal actions, the defendant gave false testimony to the pool members. Fraudsters have come up with many explanations for their «inability» to disburse their investors and provide them with a well-deserved profit. The sophistication of the excuses was ramping up, just as the partners’ suspicions, until the matter came to the foregone conclusion. Now the CFTC is in charge of recovering the lost funds of the investors involved in Black and Co’s dishonest arrangements. Besides the assets’ obtaining, the controlling authority also seeks to retrieve the funds, illicitly obtained by the relief defendants. Fairness to both victims and fraudsters is the CFTC’s goal. Despite all attempts to regain the funds, there is no guarantee it’s possible to repossess the full amounts.
The striking similarity to the Israeli scheme
Recently, the regulator discovered a similar $ 103 million scheme that involved binary options. An attempt to push an entry of default is the only difference in this situation. Four Israeli citizens had arraignment of this fraud. Unfortunately, only one, Elbaz, Lee, appeared in court, the rest fled from justice. The result of the trial over the detained Elbaz is more than twenty years in prison; she is currently serving her sentence. Waste of clients’ funds, manipulations to intensify the losses, and high-pressure selling were the standard tactics of the fraud squad.